Spotlight

Indian equity markets are likely to remain cautious amid persistently elevated crude oil prices, with WTI crude trading near the $101-per-barrel mark. However, renewed diplomatic efforts involving Iran ahead of key Israeli and U.S. votes could influence geopolitical sentiment, keeping oil prices and global risk appetite sensitive to incoming developments.  

Meanwhile, global equity markets are witnessing a rebound led by technology stocks, with Asian markets trading higher. Japan’s Nikkei 225 is up by over 1%, while South Korea’s KOSPI has gained more than 3%, reflecting improving sentiment across the region. Despite an improvement in global market sentiment, domestic equities remain vulnerable to geopolitical developments and fluctuations in crude oil prices. Investor sentiment is also likely to remain cautious ahead of the US Federal Reserve’s policy decision, with markets looking for signals on the future interest-rate trajectory. Any shift in the Fed’s outlook could influence US Treasury yields and the dollar, with implications for foreign capital flows into emerging-market equities.

The near-term direction of domestic markets is likely to remain sensitive to geopolitical headlines, movements in crude oil prices and cues from the Fed. Volatility is expected to persist as investors weigh these external risks against the potential for a sustained recovery in risk appetite. 

Technical View 

Nifty 50

Nifty 50 continues to trade below its key daily moving averages, indicating that the broader technical structure remains weak. The 22,800 level remains a crucial resistance zone, and a decisive breakout followed by sustained trading above this range would be necessary to extend the ongoing recovery towards the psychological 23,000 mark.
 
On the downside, 22,500 remains the immediate support level, followed by the 22,400–22,300 zone. A breakdown below this support range could trigger renewed selling pressure. The near-term outlook remains cautious, with sustained buying above 22,800 required to strengthen the recovery and improve market sentiment.

Bank Nifty

Bank Nifty continues to trade within a weak broader technical structure, with the ongoing recovery requiring stronger follow-through buying to improve near-term sentiment. On the upside, a sustained move above the 54,400–54,600 resistance zone could strengthen recovery momentum and pave the way for a move towards the next resistance band at 55,000–55,200.
 
On the downside, the 54,000–53,800 zone is likely to act as immediate support. A decisive breakdown below this range could intensify selling pressure and expose the index to the 53,500 level. The near-term outlook remains cautious, with the index’s ability to hold above immediate support and reclaim key resistance levels likely to determine its next directional move.